Jeff Sano bought one bond of Blue Co. for 125. The original bond was 6 3/4 21. Jeff wants to know the current yield to the nearest tenth percent. Can you help Jeff with the calculation?

Name: Jeff Sano bought one bond of Blue Co. for 125. The original bond was 6 3/4 21. Jeff wants to know the current yield to the nearest tenth percent. Can you help Jeff with the calculation?
Brand: Quizplus
Rating: 4.9 (55 reviews)

Question

Quizplus · Accepted Answer

6.75% × $1,000 = $67.50; 125% × $1,000 = $1,250; $67.50 / $1,250 = 5.4%.

Jeff Sano Bought One Bond of Blue Co